New Laws Tighten Standards in Centennial State
Colorado legislation passed this year will tighten standards for homeowners associations in the Centennial State. The legislation, which affects debt collections and manager licensing, was prompted by scandals and horror stories from associations over the past few years, including embezzlement.
The debt collection law requires all associations to set up a policy detailing basic information for homeowners. Associations must also offer delinquent homeowners a six-month payment plan at least once before taking severe action. Under the licensing law, all community association managers and management company CEOs and executives will be required to attain a state license by July 1, 2015.
Two other notable new laws are prohibiting any association from requiring the installation of turf grass, such as Kentucky bluegrass, or other extremely water-dependent landscaping, and requiring all associations to register with the state.
The Community Associations Institute (CAI), which represents associations and community managers, estimates there are between 12,000 and 15,000 associations in the state of Colorado. CAI officials have noted that community managers and boards need to be aware of the debt collection law, since their policies may not match the new law’s requirements. Managers also need to pay attention to the licensing law, since those without certification need to set aside time to become certified and take a test on Colorado law.